Combined ISP CPMU Management Functions

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5.3 Combined ISP CPMU Management Functions

Management of finance by ISP and CPMU: AIPHSS financial management and oversight is undertaken by the ISP and PMU finance teams. The ISP ’s main responsibilities are disbursement, fiduciary risk management and financial reporting. The CPMU undertake verification of all budgets, acquittals, preparation of program management reports to the Secretary General and reporting against the BAST. Following the cancellation of the grant agreement there are two different systems for financing activities. The first is the finance system for the sub-national levels which is based on monthly forecasting and transfer of funds to the PMU offices that was developed in the previous reporting period and is functioning smoothly. The second is the national level finance system which was developed in this reporting period. Steps involved in activity financing are: a The ToR and budget is prepared by the implementing partner and submitted to the CPMU b CPMU verifies the activity is in the work plan, checks budget formulation, conducts a review to ensure there is no duplication of activities and checks unit cost c Once approved by the CPMU the request for disbursement is sent to the ISP d ISP makes a final verification of the budget and disburses funds using a cheque or direct bank transfer payment to the vendor e On activity completion, the implementing unit has five days to return any outstanding funds and 14 days to deliver all documents for acquittal to the CPMU f CPMU finance staff review the acquittal to ensure it is accurate and complies with all financial requirements g Final handover of all documents to the ISP to complete the acquittal process. Experience in the application of the above system has revealed two main areas where slowing of activity implementation occurs; these are steps a and b which generally require several revisions by the implementing partners which results in slow disbursement of funds. Management of complex activities by the ISP and CPMU: Some of the activities conducted by AIPHSS are of a complex nature requiring intensive joint risk management by the ISP and CPMU. The ISP provides the financial management and procurement services and the CPMU provides coordination, and experience and knowledge of government processes. The main activities requiring this type of approach have been the ADINKES legislative reform activity and the Distance Learning Program managed by PPSDMK. Implementation of the Distance Education Program is conducted by a special unit based in the PPSDMK and represents large scale Swakelola 9 . The activity commenced in August 2013 and was unrealistically due to be completed by December 2013. Currently there are two remaining deliverables which are being finalised, the instalment of all IT infrastructures for distance learning and the development of a scholarship funding mechanisms. Technical management: Management of technical inputs remains weak and therefore one of the higher risks to the AIPHSS program. This is due to the absence of a clear technical management system in the original program design as well the failure of the TWG as a mechanism to ensure program quality. It was assumed that the PTS would be able manage these functions alongside the implementing partners with that of the TWG. The range, volume and complexity of the activities is in excess for one adviser to provide the necessary technical oversight or ensure the quality required by AIPHSS. A small pool of technical advisers to the PTS has been active since mid-2013 to assist with the technical management of the program but this has proven to be insufficient and a new approach is required. Following the IPR 9 Government led implementation where the ISP provides funding directly to government counterparts. 21 recommendations the ISP has suggested to DFAT that day to day management be assigned to the ISP followed by the recruitment of long term technical advisers to work closely with each of the implementing units at national level. With this approach the implementing partners will receive the support required and the ISP would be able to direct the more effective delivery of the program technical functions coordinating with and supporting the sub-national levels. Overall strategic direction and uptake will continue to be the responsibility of the PTS, DFAT and the Program Steering Committee PSC. 10

5.4 Monitoring and Evaluation